In the main game the hero could learn most all the skills and at some point also carry every weapon. Some gamers were pleased, as they achieved a feeling of a warrior god, who could reach anything - others would prefer the classical specialization in role-playing games. Once a mage, always a mage. With staff and not with bow.
We try, as much as possible, to please both parties. Therefore we decided to give the player a choice.

The Alternative Balancing ("AB") can be turned on or off in the main menu. Initially it is turned off, when patch 1.70 is freshly installed.
Before starting a new game a choice has to be made, if the game will be played with or without AB. Then after activation (or deactivation) Gothic 3 has to be restarted.
The saved games with Alternative Balancing are strictly separated from those without AB, as a mix up could lead to errors. Therefore it is also not possible to take a saved game, which was made without AB, and continue playing it with AB, or reverse.

The Alternative Balancing is a mode, in which a very large portion of the skills, spells and equipment values have been reworked.

Besides that, the Alternative Balancing also has a direct influence on the combat balance of the player.
For example the endurance of the hero becomes more important than before - who does not have much or none anymore, will hit a little slower in battle. An ideal situation for an opponent's counter attack.

In Alternative Balancing are also different, very specific interventions made.
Examples of this are:

Small reduction of the gold values of all items, when the hero wants to sell them

Some very powerful "chest weapons", which actually should be found only later in the game have been taken out of the inventory of traders.

The hero also doesn't regenerate hitpoints, mana or endurance anymore when looking in the inventory.

Goblin shamans do not fire homing fireballs anymore, when playing with AB.

That these - and many other - balancing adjustments also work out in the difficulty level, should quickly be clear.
If you played Gothic 3 until now on "Easy" or "Medium", you should keep it like this. If that is too easy, and those who would want to try "Hard", should however still start with "Medium" to get used to the new feeling of the game.
Only then take the pleasure (or pain) of "Hard". Then this mode will earn its name!